Delivery drones market worth USD1.29 billion by 2028 – Meticulous Research report

According to a new market research report titled Delivery Drones Market by Type (Multi-rotor, Fixed-wing, Hybrid VTOL), Payload (Less than 2 KG, 2-5 KG), Range (Less than 25 km, More than 25 km), End User (Healthcare, Retailers and E-commerce, Logistics), and Geography — Global Forecasts to 2028published by Meticulous Research, the delivery drones market is expected to grow at a CAGR of 40% from 2021–2028 to reach USD1.29 billion by 2028.

The increasing demand for faster delivery, technological advancements in drones, and the growing need to reduce carbon emissions are the factors driving the growth of the delivery drones market. In addition, increasing private investments in the drone industry, rise in e-commerce, and rising demand for contactless delivery amidst the COVID-19 pandemic are projected to provide significant growth opportunities for the vendors operating in this market.

However, the high cost of infrastructure and limited battery life of aerial delivery drones are expected to restrain the growth of this market to a certain extent. In addition, stringent government regulations for UAVs and security breaches using aerial delivery drones pose a major challenge for the growth of the delivery drones market.

The overall delivery drones market is segmented based on type, payload, range, end user, and geography. The study also evaluates industry competitors and analyzes the market at the country level.

End-user

Based on end user, the delivery drones market is segmented into healthcare, retailers & e-commerce, food & beverages, logistics, and other end users. The retailers & e-commerce segment dominated the delivery drones market 2021. The dominant position of this segment is attributed to the capability of delivery drones to deliver small packages of commercial goods faster than traditional means of delivery. High delivery speed, door-step shipping, and the potential to serve rural and semi-rural areas are the factors increasing the adoption of delivery drones. However, the logistics segment is expected to grow at the highest CAGR during the forecast period.

Geography

Based on geography, this market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific dominated the global delivery drones market in 2021. The rising number of customers switching from offline shopping to online shopping platforms and increasing partnerships between various local traders and leading e-commerce companies are the factors that contribute to the large market share of this region. The growing adoption of delivery drones in countries such as China, South Korea, and Japan has boosted the demand for delivery drones in the APAC region. The demand for delivery drones is expected to increase in Asia-Pacific due to the rapid growth of online shopping platforms, which increases the demand for instant parcel delivery.

North America is expected to witness the fastest growth during the forecast period. The increasing investments by key players to promote parcel drone delivery service platforms and the increasing government measures to support the use of drone delivery services are the key factors driving the growth of the drone delivery market in North America.

Delivery type

Based on type, the delivery drones market is segmented into multi-rotor, fixed-wing, single-rotor, and hybrid VTOL. The multi-rotor segment dominated the overall delivery drones market in 2021. The large market share of this segment is attributed to its ability to operate in a wider variety of environments. These drones can hover in a fixed position and fly in any direction and are used to deliver services in the healthcare, logistics, and retail sectors. However, the hybrid VTOL segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the benefits of multi-rotor platforms with fixed-wing drones and the transition between the two modes during flight. The ability to vertically take-off and land without using any launcher or runway has made hybrid VTOL delivery drones operate in any location.

Based on payload, the delivery drones market is segmented into less than 2 Kg, 2–5 Kg, and more than 5 Kg. The less than 2 Kg segment dominated the delivery drones market in 2021. The large market share of this segment is attributed to its capability to expeditiously deliver small packages of up to 2 kg. This category denotes the provision of small grocery, coffee, postal delivery, gifts, healthcare & wellness products, and commercial goods under a specific weight limit. However, the more than 5 Kg segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to its use in aerial shipping of packages of more than 5 kg. Delivery drones are utilized for shipping products in rural areas and dense urban areas. These drones can deliver essential supplies during medical emergencies and natural disasters. Hence, these factors boost the adoption of delivery drones.

Based on range, the delivery drones market is segmented into less than 25 Km, and more than 25 Km. The less than 25 Km segment dominated the delivery drones market in 2021. Drone delivery caters to rural and dense urban areas, reduces manual involvement and shipping expenses, and enables door-step delivery and service expansion in areas lacking infrastructure. Thus, these factors contribute to the large market share of this segment. However, the more than 25 Km segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is mainly attributed to drones being used to provide shipping services at distances of more than 25km. These drones are used in various sectors, such as logistics, e-commerce, healthcare, retailer, and food & beverage. The capability of these drones to deliver goods at distances of more than 25km has encouraged various companies to adopt drone services worldwide.

Key players

The key players operating in the global delivery drones market are Amazon.com Inc (U.S.), Boeing Co (U.S.), Airbus SE (Netherlands), Drone Delivery Canada Corp (Canada), Wing Aviation LLC (U.S.), Flirtey (U.S.), Zipline (U.S.), Wingcopter GmbH (Germany), FLI Drone (U.S.), Flytrex Inc (U.S.), Matternet Inc (U.S.), Deutsche Post DHL Group (Germany), United Parcel Services (U.S.), SF Express Co. Ltd. (China), and Rakuten Group Inc (Japan) among others.

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